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Allowance for Loan Losses and Credit Quality of Loans (Tables)
 3 Months Ended
Mar. 31, 2018
Allowance for Loan Losses and Credit Quality of Loans [Abstract]  
Portfolio and Class Segments
:
Portfolio
Class - 2018
Class - 2017
Commercial Loans
Commercial and Industrial
Commercial
 
Commercial Real Estate
Commercial Real Estate
 
Business Banking
Agricultural
 
 
Agricultural Real Estate
 
 
Business Banking
Consumer Loans
Dealer Finance
Indirect
 
Specialty Lending
Home Equity
 
Direct
Direct
Residential Real Estate Mortgages
Allowance for Loan Losses by Portfolio
The following tables illustrate the changes in the allowance for loan losses by our portfolio segments:

(In thousands)
 
Commercial Loans
  
Consumer Loans
  
Residential Real Estate Mortgages
  
Total
 
Balance as of December 31, 2017
 
$
27,606
  
$
36,830
  
$
5,064
  
$
69,500
 
Charge-offs
  
(805
)
  
(7,687
)
  
(182
)
  
(8,674
)
Recoveries
  
187
   
1,644
   
47
   
1,878
 
Provision
  
1,202
   
6,186
   
108
   
7,496
 
Ending Balance as of March 31, 2018
 
$
28,190
  
$
36,973
  
$
5,037
  
$
70,200
 
 
                
Balance as of December 31, 2016
 
$
25,444
  
$
33,375
  
$
6,381
  
$
65,200
 
Charge-offs
  
(1,294
)
  
(6,502
)
  
(598
)
  
(8,394
)
Recoveries
  
447
   
1,035
   
33
   
1,515
 
Provision
  
130
   
6,861
   
388
   
7,379
 
Ending Balance as of March 31, 2017
 
$
24,727
  
$
34,769
  
$
6,204
  
$
65,700
 

The following tables illustrate the allowance for loan losses and the recorded investment by portfolio segments:

 
(In thousands)
 
Commercial Loans
  
Consumer Loans
  
Residential Real Estate Mortgages
  
Total
 
As of March 31, 2018
            
Allowance for loan losses
 
$
28,190
  
$
36,973
  
$
5,037
  
$
70,200
 
Allowance for loans individually evaluated for impairment
  
42
   
-
   
-
   
42
 
Allowance for loans collectively evaluated for impairment
  
28,148
   
36,973
   
5,037
   
70,158
 
Ending balance of loans
  
3,048,003
   
2,266,054
   
1,333,067
   
6,647,124
 
Ending balance of originated loans individually evaluated for impairment
  
6,006
   
8,305
   
6,771
   
21,082
 
Ending balance of acquired loans collectively evaluated for impairment
  
172,920
   
40,666
   
164,123
   
377,709
 
Ending balance of originated loans collectively evaluated for impairment
 
$
2,869,077
  
$
2,217,083
  
$
1,162,173
  
$
6,248,333
 
 
                
As of December 31, 2017
                
Allowance for loan losses
 
$
27,606
  
$
36,830
  
$
5,064
  
$
69,500
 
Allowance for loans individually evaluated for impairment
  
57
   
-
   
-
   
57
 
Allowance for loans collectively evaluated for impairment
  
27,549
   
36,830
   
5,064
   
69,443
 
Ending balance of loans
  
3,028,269
   
2,234,809
   
1,321,695
   
6,584,773
 
Ending balance of originated loans individually evaluated for impairment
  
5,876
   
8,432
   
6,830
   
21,138
 
Ending balance of acquired loans collectively evaluated for impairment
  
187,313
   
43,906
   
170,472
   
401,691
 
Ending balance of originated loans collectively evaluated for impairment
 
$
2,835,080
  
$
2,182,471
  
$
1,144,393
  
$
6,161,944
 
Past Due and Nonperforming Loans by Loan Class
The following tables set forth information with regard to past due and nonperforming loans by loan class:
 
(In thousands)
 
31-60 Days Past Due Accruing
  
61-90 Days Past Due Accruing
  
Greater Than 90 Days Past Due Accruing
  
Total Past Due Accruing
  
NonAccrual
  
Current
  
Recorded Total Loans
 
As of March 31, 2018
                     
Originated
                     
Commercial Loans:
                     
C&I
 
$
639
  
$
1,268
  
$
-
  
$
1,907
  
$
1,196
  
$
784,845
  
$
787,948
 
CRE
  
28
   
-
   
-
   
28
   
5,232
   
1,600,096
   
1,605,356
 
Business Banking
  
2,116
   
797
   
-
   
2,913
   
6,194
   
472,672
   
481,779
 
Total Commercial Loans
 
$
2,783
  
$
2,065
  
$
-
  
$
4,848
  
$
12,622
  
$
2,857,613
  
$
2,875,083
 
Consumer Loans:
                            
Dealer Finance
 
$
10,850
  
$
1,920
  
$
987
  
$
13,757
  
$
2,201
  
$
1,224,238
  
$
1,240,196
 
Specialty Lending
  
3,843
   
1,627
   
1,292
   
6,762
   
-
   
464,912
   
471,674
 
Direct
  
2,334
   
982
   
401
   
3,717
   
2,470
   
507,331
   
513,518
 
Total Consumer Loans
 
$
17,027
  
$
4,529
  
$
2,680
  
$
24,236
  
$
4,671
  
$
2,196,481
  
$
2,225,388
 
Residential Real Estate
Mortgages
 
$
2,389
  
$
1,635
  
$
203
  
$
4,227
  
$
5,487
  
$
1,159,230
  
$
1,168,944
 
Total Originated Loans
 
$
22,199
  
$
8,229
  
$
2,883
  
$
33,311
  
$
22,780
  
$
6,213,324
  
$
6,269,415
 
 
                            
Acquired
                            
Commercial Loans:
                            
C&I
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
33,484
  
$
33,484
 
CRE
  
-
   
-
   
-
   
-
   
2
   
97,463
   
97,465
 
Business Banking
  
539
   
9
   
-
   
548
   
673
   
40,750
   
41,971
 
Total Commercial Loans
 
$
539
  
$
9
  
$
-
  
$
548
  
$
675
  
$
171,697
  
$
172,920
 
Consumer Loans:
                            
Dealer Finance
 
$
7
  
$
3
  
$
-
  
$
10
  
$
15
  
$
577
  
$
602
 
Direct
  
368
   
-
   
51
   
419
   
281
   
39,364
   
40,064
 
Total Consumer Loans
 
$
375
  
$
3
  
$
51
  
$
429
  
$
296
  
$
39,941
  
$
40,666
 
Residential Real Estate
Mortgages
 
$
565
  
$
102
  
$
-
  
$
667
  
$
1,675
  
$
161,781
  
$
164,123
 
Total Acquired Loans
 
$
1,479
  
$
114
  
$
51
  
$
1,644
  
$
2,646
  
$
373,419
  
$
377,709
 
                             
Total Loans
 
$
23,678
  
$
8,343
  
$
2,934
  
$
34,955
  
$
25,426
  
$
6,586,743
  
$
6,647,124
 

(In thousands)
 
31-60 Days Past Due Accruing
  
61-90 Days Past Due Accruing
  
Greater Than 90 Days Past Due Accruing
  
Total Past Due Accruing
  
Non-Accrual
  
Current
  
Recorded Total Loans
 
As of December 31, 2017
                     
Originated
                     
Commercial Loans:
                     
Commercial
 
$
-
  
$
-
  
$
-
  
$
-
  
$
202
  
$
753,577
  
$
753,779
 
Commercial Real Estate
  
161
   
138
   
-
   
299
   
3,178
   
1,533,065
   
1,536,542
 
Agricultural
  
117
   
-
   
-
   
117
   
1,043
   
34,386
   
35,546
 
Agricultural Real Estate
  
493
   
-
   
-
   
493
   
2,736
   
30,905
   
34,134
 
Business Banking
  
1,907
   
597
   
-
   
2,504
   
5,304
   
473,147
   
480,955
 
Total Commercial Loans
 
$
2,678
  
$
735
  
$
-
  
$
3,413
  
$
12,463
  
$
2,825,080
  
$
2,840,956
 
Consumer Loans:
                            
Indirect
 
$
18,747
  
$
4,033
  
$
3,492
  
$
26,272
  
$
2,115
  
$
1,642,664
  
$
1,671,051
 
Home Equity
  
2,887
   
854
   
341
   
4,082
   
2,736
   
448,081
   
454,899
 
Direct
  
341
   
108
   
70
   
519
   
35
   
64,399
   
64,953
 
Total Consumer Loans
 
$
21,975
  
$
4,995
  
$
3,903
  
$
30,873
  
$
4,886
  
$
2,155,144
  
$
2,190,903
 
Residential Real Estate
Mortgages
 
$
3,730
  
$
667
  
$
1,262
  
$
5,659
  
$
5,987
  
$
1,139,577
  
$
1,151,223
 
Total Originated Loans
 
$
28,383
  
$
6,397
  
$
5,165
  
$
39,945
  
$
23,336
  
$
6,119,801
  
$
6,183,082
 
                             
Acquired
                            
Commercial Loans:
                            
Commercial
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
39,575
  
$
39,575
 
Commercial Real Estate
  
-
   
-
   
-
   
-
   
2
   
106,632
   
106,634
 
Business Banking
  
354
   
-
   
-
   
354
   
669
   
40,081
   
41,104
 
Total Commercial Loans
 
$
354
  
$
-
  
$
-
  
$
354
  
$
671
  
$
186,288
  
$
187,313
 
Consumer Loans:
                            
Indirect
 
$
38
  
$
-
  
$
1
  
$
39
  
$
22
  
$
1,157
  
$
1,218
 
Home Equity
  
254
   
34
   
103
   
391
   
225
   
39,256
   
39,872
 
Direct
  
6
   
1
   
1
   
8
   
23
   
2,785
   
2,816
 
Total Consumer Loans
 
$
298
  
$
35
  
$
105
  
$
438
  
$
270
  
$
43,198
  
$
43,906
 
Residential Real Estate
Mortgages
 
$
627
  
$
226
  
$
140
  
$
993
  
$
1,431
  
$
168,048
  
$
170,472
 
Total Acquired Loans
 
$
1,279
  
$
261
  
$
245
  
$
1,785
  
$
2,372
  
$
397,534
  
$
401,691
 
                             
Total Loans
 
$
29,662
  
$
6,658
  
$
5,410
  
$
41,730
  
$
25,708
  
$
6,517,335
  
$
6,584,773
 
Impaired Loans and Specific Reserve Allocations
The following table provides information on impaired loans specifically evaluated for impairment:
 
 
 
March 31, 2018
  
December 31, 2017
 
(In thousands)
 
Recorded Investment Balance (Book)
  
Unpaid Principal Balance (Legal)
 
Related Allowance
  
Recorded Investment Balance (Book)
  
Unpaid Principal Balance (Legal)
 
Related Allowance
 
Originated
                
With no related allowance recorded:
                
Commercial Loans:
                
C&I
 
$
430
  
$
696
    
$
-
  
$
-
   
CRE
  
4,397
   
6,362
     
-
   
-
   
Commercial
  
-
   
-
     
-
   
251
   
Commercial Real Estate
  
-
   
-
     
2,211
   
3,979
   
Agricultural
  
-
   
-
     
452
   
465
   
Agricultural Real Estate
  
-
   
-
     
2,250
   
2,423
   
Business Banking
  
1,078
   
2,135
     
860
   
1,730
   
Total Commercial Loans
 
$
5,905
  
$
9,193
    
$
5,773
  
$
8,848
   
Consumer Loans:
                    
Dealer Finance
 
$
198
  
$
216
    
$
-
  
$
-
   
Direct
  
8,107
   
10,077
     
-
   
-
   
Indirect
  
-
   
-
     
131
   
143
   
Home Equity
  
-
   
-
     
8,027
   
9,966
   
Direct
  
-
   
-
     
274
   
274
   
Total Consumer Loans
 
$
8,305
  
$
10,293
    
$
8,432
  
$
10,383
   
Residential Real Estate Mortgages
 
$
6,771
  
$
9,097
    
$
6,830
  
$
8,780
   
Total
 
$
20,981
  
$
28,583
    
$
21,035
  
$
28,011
   
 
                    
With an allowance recorded:
                    
Commercial Loans:
                    
C&I
 
$
27
  
$
26
  
$
27
  
$
-
  
$
-
  
$
-
 
CRE
  
74
   
81
   
15
   
-
   
-
   
-
 
Commercial Real Estate
  
-
   
-
   
-
   
76
   
82
   
30
 
Agricultural
  
-
   
-
   
-
   
27
   
27
   
27
 
Total Commercial Loans
 
$
101
  
$
107
  
$
42
  
$
103
  
$
109
  
$
57
 
                         
Total:
 
$
21,082
  
$
28,690
  
$
42
  
$
21,138
  
$
28,120
  
$
57
 
 
The following tables summarize the average recorded investments on loans specifically evaluated for impairment and the interest income recognized:
 
 
 
For the three months ended
 
 
 
March 31, 2018
  
March 31, 2017
 
(In thousands)
 
Average Recorded Investment
  
Interest Income Recognized Accrual
  
Average Recorded Investment
  
Interest Income Recognized Accrual
 
Originated
            
Commercial Loans:
            
C&I
 
$
467
  
$
-
  
$
-
  
$
-
 
CRE
  
4,506
   
32
   
-
   
-
 
Commercial
  
-
   
-
   
2,926
   
-
 
Commercial Real Estate
  
-
   
-
   
5,995
   
44
 
Agricultural
  
-
   
-
   
173
   
-
 
Agricultural Real Estate
  
-
   
-
   
1,580
   
11
 
Business Banking
  
954
   
5
   
650
   
2
 
Total Commercial Loans
 
$
5,927
  
$
37
  
$
11,324
  
$
57
 
Consumer Loans:
                
Dealer Finance
 
$
184
  
$
3
  
$
-
  
$
-
 
Direct
  
8,190
   
109
   
-
   
-
 
Indirect
  
-
   
-
   
5
   
-
 
Home Equity
  
-
   
-
   
8,431
   
110
 
Total Consumer Loans
 
$
8,374
  
$
112
  
$
8,436
  
$
110
 
Residential Real Estate Mortgages
 
$
6,881
  
$
73
  
$
5,611
  
$
39
 
Total Originated
 
$
21,182
  
$
222
  
$
25,371
  
$
206
 
                 
Acquired
                
Commercial Loans:
                
Commercial Real Estate
 
$
-
  
$
-
  
$
301
  
$
-
 
Total Commercial Loans
 
$
-
  
$
-
  
$
301
  
$
-
 
Total Acquired
 
$
-
  
$
-
  
$
301
  
$
-
 
                 
Total Loans
 
$
21,182
  
$
222
  
$
25,672
  
$
206
 
Financing Receivable Credit Quality by Loan Class
The following tables illustrate the Company's credit quality by loan class:
 
(In thousands)
March 31, 2018
 
Originated
          
Commercial Credit Exposure
          
By Internally Assigned Grade:
 
 
 
 
 
C&I
 
 
CRE
 
 
Total 
Pass
 
 
 
  
 
 
  
$
$731,934
  
$
$1,550,184
  
$
2,282,118
 
Special Mention
          
37,543
   
15,868
   
53,411
 
Substandard
          
18,471
   
39,304
   
57,775
 
Total
         
$
787,948
  
$
1,605,356
  
$
2,393,304
 
 
                    
Business Banking Credit Exposure
                    
By Internally Assigned Grade:
 
 
 
 
 
   Business Banking 
 
 		  
Total
 
Non-classified
 
 
 
  
 
 
  
 
 
  
$
468,842
  
$
468,842
 
Classified
              
12,937
   
12,937
 
Total
             
$
481,779
  
$
481,779
 
 
                    
Consumer Credit Exposure
                    
By Payment Activity:
 
 
Dealer Finance
 
Specialty Lending
 
Direct
  
Total
 
Performing
 
 
 
  
$
1,237,008
  
$
470,382
  
$
510,647
  
$
2,218,037
 
Nonperforming
  
 
   
3,188
   
1,292
   
2,871
   
7,351
 
Total
     
$
1,240,196
  
$
471,674
  
$
513,518
  
$
2,225,388
 
 
                    
Residential Real Estate Mortgage Credit Exposure
                    
By Payment Activity:
 
 
 
 
 
 
Residential
Real Estate 
Mortgage
 
Total
 
Performing
 
 
 
  
 
 
  
 
 
  
$
1,163,254
  
$
1,163,254
 
Nonperforming
              
5,690
   
5,690
 
Total
             
$
1,168,944
  
$
1,168,944
 
 
 
Acquired
         
Commercial Credit Exposure
         
By Internally Assigned Grade:
 
 
 
C&I
 
 
CRE
 
 
Total
 
Pass
 
 
 
  
$
30,699
  
$
96,233
  
$
126,932
 
Special Mention
      
2,069
   
484
   
2,553
 
Substandard
      
716
   
748
   
1,464
 
Total
     
$
33,484
  
$
97,465
  
$
130,949
 
 
                
Business Banking Credit Exposure
                
By Internally Assigned Grade:
        
Business Banking
 
 
Total
 
Non-classified
         
$
39,111
  
$
39,111
 
Classified
          
2,860
   
2,860
 
Total
         
$
41,971
  
$
41,971
 
 
                
Consumer Credit Exposure
                
By Payment Activity:
    Dealer Finance  
Direct
 
Total
  
Performing
     
$
587
  
$
39,732
  
$
40,319
 
Nonperforming
      
15
   
332
   
347
 
Total
     
$
602
  
$
40,064
  
$
40,666
 
 
                
Residential Real Estate Mortgage Credit Exposure
                
By Payment Activity:
        
Residential
Real Estate
Mortgage
 
 
Total
 
Performing
         
$
162,448
  
$
162,448
 
Nonperforming
          
1,675
   
1,675
 
Total
         
$
164,123
  
$
164,123
 
 

(In thousands)
 
As of December 31, 2017
 
Originated
           
Commercial Credit Exposure
           
By Internally Assigned Grade:
 
Commercial
 
Commercial Real Estate
 
Agricultural
 
Agricultural Real Estate
 
Total
 
Pass
 
$
708,567
  
$
1,481,926
  
$
31,142
  
$
23,381
  
$
2,245,016
 
Special Mention
  
30,337
   
28,264
   
2,294
   
2,441
   
63,336
 
Substandard
  
14,875
   
26,352
   
2,110
   
8,312
   
51,649
 
Total
 
$
753,779
  
$
1,536,542
  
$
35,546
  
$
34,134
  
$
2,360,001
 
 
                    
Business Banking Credit Exposure
                    
By Internally Assigned Grade:
            
Business Banking
 
Total
 
Non-classified
             
$
468,898
  
$
468,898
 
Classified
              
12,057
   
12,057
 
Total
             
$
480,955
  
$
480,955
 
                     
Consumer Credit Exposure
                    
By Payment Activity:
    
 
Indirect
 
Home Equity
 
 
Direct
 
 
Total
 
Performing
     
$
1,665,444
  
$
451,822
  
$
64,848
  
$
2,182,114
 
Nonperforming
      
5,607
   
3,077
   
105
   
8,789
 
Total
     
$
1,671,051
  
$
454,899
  
$
64,953
  
$
2,190,903
 
 
                    
Residential Real Estate Mortgage Credit Exposure
                    
By Payment Activity:
            
Residential
Real Estate
Mortgage
 
Total
 
Performing
             
$
1,143,974
  
$
1,143,974
 
Nonperforming
              
7,249
   
7,249
 
Total
             
$
1,151,223
  
$
1,151,223
 
 

Acquired
        
Commercial Credit Exposure
        
By Internally Assigned Grade:
  
Commercial
 
Commercial Real Estate
 
 
Total
 
Pass
   
$
37,825
  
$
103,248
  
$
141,073
 
Special Mention
    
425
   
498
   
923
 
Substandard
    
1,325
   
2,888
   
4,213
 
Total
   
$
39,575
  
$
106,634
  
$
146,209
 
 
              
Business Banking Credit Exposure
              
By Internally Assigned Grade:
      
Business Banking
 
Total
 
Non-classified
       
$
38,236
  
$
38,236
 
Classified
        
2,868
   
2,868
 
Total
       
$
41,104
  
$
41,104
 
 
              
Consumer Credit Exposure
              
By Payment Activity:
 
Indirect
 
Home Equity
 
Direct
 
Total
 
Performing
 
$
1,195
  
$
39,544
  
$
2,792
  
$
43,531
 
Nonperforming
  
23
   
328
   
24
   
375
 
Total
 
$
1,218
  
$
39,872
  
$
2,816
  
$
43,906
 
 
                
Residential Real Estate Mortgage Credit Exposure
                
By Payment Activity:
        
Residential
Real Estate
Mortgage
 
Total
 
Performing
         
$
168,901
  
$
168,901
 
Nonperforming
          
1,571
   
1,571
 
Total
         
$
170,472
  
$
170,472
 
Troubled Debt Restructurings on Financing Receivables
The following tables illustrate the recorded investment and number of modifications for modified loans, including the recorded investment in the loans prior to a modification and the recorded investment in the loans after restructuring (dollars in thousands):

 
 
Three months ended March 31, 2018
 
(Dollars in thousands)
 
Number of Contracts
  
Pre-Modification Outstanding Recorded Investment
  
Post-Modification Outstanding Recorded Investment
 
Commercial
         
Business Banking
  
3
  
$
319
  
$
410
 
Total Commercial
  
3
  
$
319
  
$
410
 
Consumer
            
Dealer Finance
  
6
  
$
82
  
$
81
 
Direct
  
2
   
41
   
41
 
Total Consumer
  
8
  
$
123
  
$
122
 
Residential Real Estate Mortgages
  
5
   
323
   
323
 
Total Troubled Debt Restructurings
  
16
  
$
765
  
$
855
 

 
 
Three months ended March 31, 2017
 
  
 
Number of Contracts
  
Pre-Modification Outstanding Recorded Investment
  
Post-Modification Outstanding Recorded Investment
 
Consumer
         
Home Equity
  
2
  
$
78
  
$
77
 
Total Consumer
  
2
  
$
78
  
$
77
 
Residential Real Estate Mortgages
  
1
  
$
141
  
$
138
 
Total Troubled Debt Restructurings
  
3
  
$
219
  
$
215
 

The following table illustrates the recorded investment and number of modifications for TDRs where a concession has been made and subsequently defaulted during the period:

  
Three months ended
March 31, 2018
  
Three months ended
March 31, 2017
 
(Dollars in thousands)
 
Number of contracts
  
Recorded Investment
  
Number of contracts
  
Recorded Investment
 
Commercial Loans:
            
Commercial  -  $-   1  $145 
Business Banking
  
1
  
 
200
   
-
  
 
-
 
Total Commercial Loans
  
1
  
$
200
   
-
  
$
145
 
                 
Consumer Loans:
                
Indirect  -  $-   1  $5 
Home Equity  -   -   12   663 
Direct
  
14
  
 
870
   
-
  
 
-
 
Total Consumer Loans
  
14
  
$
870
   
13
  
$
668
 
                 
Residential Real Estate Mortgages
  
8
  
$
504
   
4
  
$
167
 
                 
Total Troubled Debt Restructurings
  
23
  
$
1,574
   
18
  
$
980